Individuals, groups and leaders who promote human development operate under strong institutional, structural and political constraints that affect policy options. But experience suggests broad principles for shaping an appropriate agenda for human development. One important finding from several decades of human development experience is that focusing exclusively on economic growth is problematic. While we have good knowledge about how to advance health and education, the causes of growth are much less certain and growth is often elusive. Further, an unbalanced emphasis on growth is often associated with negative environmental consequences and adverse distributional effects. The experience of China, with its impressive growth record, reflects these broader concerns and underlines the importance of balanced approaches that emphasize investments in the non-income aspects of human development. With reference to till above passage, consider the following statements: 1) In developing countries, a strong institutional framework is the only requirement for human development and policy options. 2) Human development and economic growth are not always positively inter-related. 3) Focusing only on human development should be the goal of economic growth. Which of the above statements is/are correct?

Analysis of statements based on the passage: 1) In developing countries, a strong institutional framework is the only requirement for human development and policy options. The passage states that individuals and groups operate under "strong institutional, structural and political constraints." While it acknowledges the importance of institutional frameworks, it does not state that it is the "only" requirement. The word "only" makes this statement too absolute and therefore incorrect based on the passage. 2) Human development and economic growth are not always positively inter-related. The passage explicitly states, "focusing exclusively on economic growth is problematic" and that "an unbalanced emphasis on growth is often associated with negative environmental consequences and adverse distributional effects." It also mentions China's experience, which despite impressive growth, underlines the importance of "balanced approaches that emphasize investments in the non-income aspects of human development." This clearly indicates that economic growth does not always lead to positive human development outcomes, especially if pursued exclusively or in an unbalanced way, thus supporting the idea that they are not always positively inter-related. 3) Focusing only on human development should be the goal of economic growth. The passage criticizes an "exclusive focus on economic growth" and advocates for "balanced approaches that emphasize investments in the non-income aspects of human development." It does not, however, suggest that the *only* goal should be human development, nor does it dismiss economic growth entirely. It calls for a balance, not an exclusive focus on human development. Therefore, this statement is incorrect. Based on the analysis, only statement 2 is correct. The final answer is C